Mill's Method of Difference Helps to Identify Causes By

question 33

Multiple Choice

Mill's method of difference helps to identify causes by:

• A)examining the differences between the suspected causal factor and the effect
• B)examining cases in which the suspected cause is not present in order to see whether the effect still occurs
• C)examining cases in which the suspected cause is present in order to see whether different effects occur
• D)eliminating causal explanations about which most people disagree
• E)eliminating causal explanations about which most experts disagree

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit; an important metric in understanding per unit profitability and in break-even analysis.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Cost Per Unit

The cost that varies with the level of output or activity and is typically assessed on a per-unit basis.

Fixed Cost Per Unit

This is the calculated cost assigned to each unit of production, derived by dividing the total fixed costs by the number of units produced.